Question

Dora started a registered education savings plan (RESP) for her newborn daughter this year and contributed $3,000 to the plan. Her family income is high enough that she does not qualify for enhanced Canada Education Savings Grant (CESG) payments. How much will Dora receive as CESG?

Answer 1

Dora will receive $600 as CESG for her newborn daughter's RESP.

Step-by-step explanation:

To calculate the Canada Education Savings Grant (CESG) Dora will receive, we first need to understand how the grant works. The CESG is a government program that provides an additional amount of money to contribute to an RESP. For a child under the age of 18, the CESG is 20% of the contributions made, up to a maximum of $500 per year. In Dora's case, she contributed $3,000 to the RESP, so she will receive 20% of that amount as CESG. This equates to $600 in CESG that Dora will receive.